Intro to Business 1 CAP
laws that prevent monopolies and promote competition and fairness
antitrust laws
a document used by employers that asks for information related to employment. It gives the employer standard information about each job applicant
application form
a written legal document that defines ownership and operating procedures and conditions for the business
articles of incorporations
"Is it important to you to have a challenging occupation, even if it requires additional schooling?" The answer you give to this question will help you identify your _____. a. abilities b. values c. interests d. talents
b
A _____ occurs when a government spends less than it takes in. a. budget shortage b. budget surplus c. budget over-run d. budget deficit
b
A commonly suggested action to take after an interview is to a. contact the organization about the salary. b. evaluate your performance in the interview. c. revise your resume. d. estimate the cost of career training for the job.
b
True or False? A glass ceiling is an artificial limit placed on minority groups moving into positions of authority and decision-making.
True
True or False? A monopoly exists when a single business controls the market for a specific product or service.
True
True or False? An oral contract can be legally binding.
True
True or False? Entrepreneurship is risky.
True
A(n) _____ expands trade among member nations and promotes regional economic integration. a. common market b. free-trade zone c. embargo zone d. free-trade agreement
b
A(n) _____ is a natural, inborn aptitude to do certain things. a. interest b. talent c. ability d. skill
b
A(n) _____ is an invention or creation that is brand new. a. improvement b. innovation c. development d. advancement
b
Communication between a supervisor in one department and a supervisor in another department is an example of _____ communication. a. formal b. horizontal c. external d. vertical
b
A _____ gives the inventor the sole right to make, use, or sell the item for 20 years. a. logo b. trademark c. patent d. copyright
c
A __________ would protect the composer's musical score. a. patent b. trademark c. copyright d. contract
c
A code of ethics is designed to a. meet government regulations b. reduce operating costs of a company c. provide guidelines for proper behavior d. improve employee productivity
c
A(n) _____ is the value of a currency of one country compared with the value of another. a. balance of payments b. discount rate c. exchange rate d. inflation rate
c
the way people get along with each other
human relations
an economy in which the resources are owned and controlled by the people of the country
market economy
an increase in the general level of prices
inflation
power enabling a person to affect the actions of others
influence
power resulting from the personal characteristics of a leader rather than the formal structure of an organization
informal influence
a planned discussion with a worker who is willing to help you find out about the work that a person does, the preparation needed for that career, and the person's feelings about the career
informational interview
a factor that supports international trade in industrialized countries, including a nation's transportation, communication, and utility systems
infrastructure
a designed change that increases the usefulness of a product, service, or process
innovation
businesses involved in selling goods and services of producers to consumers and other businesses
intermediaries
the point where supply and demand are equal
market price
an experienced employee who serves as a teacher and counselor for a less-experienced person
mentor
short, specific written statement of the reason a business exists and what it wants to achieve
mission statement
when a business has control of the market for a product or service
monopoly
the process of accomplishing the goals of an organization through the effective use of people and other resources
management
the way a manager treats and involves employees
management style
an organization that does business in several countries. usually consists of a home country and divisions or separate companies in one or more host countries
multinational company (MNC)
the total amount owed by the federal government
national debt
things that are required in order to live
needs
the function of a manager that involves analyzing information, setting goals, and making decisions about what needs to be done
planning
guidelines used in making consistent decisions
policies
a number that compares prices in one year with some earlier base year
price index
True or False? The role of the government in the economy rarely changes when newly elected officials take office.
False
True or False? When consumers increase their borrowing, interest rates tend to decline.
False
True or False? A business plan does not have to be written because the business owner is well aware of the information in the plan.
False
True or False? A contract must be written to be enforceable
False
True or False? A free-trade zone is a selected area where products can be imported duty-free and then stored, assembled, and/or used in manufacturing.
False
True or False? A manager who supervises inexperienced employees can have a greater span of control than one who supervises experienced employees.
False
the output per person, calculated by dividing gross domestic products (GDP) by the total production
GDP per capita
a government agency that helps small business owners develop business plans and obtain financing and other support for their companies.
Small Business Administration (SBA)
True of False? It is not always easy to determine the products and services that satisfy needs and those that satisfy wants.
True
True or False? Ethical business practices ensure that appropriate standards of conduct are maintained by everyone who is a part of the business and with anyone affected by the business.
True
True or False? Governments obtain revenue through taxing and borrowing.
True
True or False? If intermediate goods were counted as a part of gross domestic product (GDP), the value of these goods would be counted twice.
True
True or False? If your abilities are weak in certain areas, you can develop them.
True
True or False? In the United States, workers have a basic right to safe working conditions.
True
True or False? Infrastructure is a significant factor that affects the economic development of a country.
True
True or False? Local and state government employment offices help people find jobs and provide career information.
True
The employment relationship between a company and an employee is ended with a(n) a. termination. b. interview. c. evaluation. d. lawsuit.
a
the quality of being able to perform a mental or physical task
ability
the decision making process is best to make when a. you already know the choice you will make b. you are facing a decision with several good alternatives c. groups rather than individuals are making a choice d. you don't have enough money to pay for any of the choices
b
the difference between the amount of money that comes into a country and the amount that goes out of a country.
balance of payments
the difference between a country's total exports and total imports
balance of trade
compensation in forms other than direct payment
benefits
a certificate representing a promise to pay a definite amount of money at a stated interest rate on a specific due date
bond
Which of these sources of career information is provided by the Bureau of Labor Statistics? a. Career World magazine b. CareerBuilder.com c. Occupational Outlook Handbook d. The Encyclopedia of Careers and Vocational Guidance
c
You bought a pair of shoes priced at $60. Your state has a 5 percent sales tax. How much money must the store pay to the state government as a result of this sale? a. $63 b. $30 c. $3 d. $57
c
_____ is a period in which demand begins to decrease, businesses lower production, unemployment begins to rise, and GDP growth slows for two or more quarters of the calendar year. a. Depression b. Recovery c. Recession d. Deflation
c
_____ refers to the quantity of a good or service that businesses are willing and able to provide. a. Demand b. Scarcity c. Supply d. Trade-off
c
spending by business for items such as land, buildings, equipment, and new products
capital projects
the private ownership of economic resources by individuals rather than the government
capitalism
a goal for work that is fulfilled through an occupation or series of occupations
career
the protection of the creative work of authors, composers, and artists.
copyright
the important principles that will guide decisions and actions in the company
core values
a separate legal entity formed by documents filed with a state. It is owned by one or more shareholders and managed by a board of directors
corporation
a letter expressing your interest in a specific job
cover letter
A _____ ends employment due to inappropriate work behavior. a. termination b. transfer c. layoff d. discharge
d
A _____ is an agreement to exchange goods or services for something of value, usually money. a. bond b. consideration c. patent d. contract
d
Market price is determined by all of the following except _____. a. demand b. supply c. competition d. opportunity cost
d
a decrease in the general level of prices
deflation
an action imposed by the government to stop the export or import of a product completely
embargo
a two-way conversation in which the interviewer learns about you and you learn about the job and the company
employment interview
a person who takes a risk in starting a business to earn a profit
entrepreneur
the process of starting, organizing, managing, and assuming the responsibility for a business
entrepreneurship
principles of morality or rules of conduct
ethics
power based on a leader's position within the formal structure of an organization
formal influence
a written contract granting permission to operate a business to sell products and services in a set way
franchise
an artificial limit placed on minority groups moving into positions of authority and decision-making
glass cieling
a precise statement of results thee business expects to achieve
goal
a manager's effort to direct and lead people to accomplish the planned work of the organization
implementing
goods and services bought from other countries
imports
a designed change that increases the usefulness of a product, service, or process
improvement
compensation systems connected to the quality or quantity of an employee's performance
incentive systems
a specific study of a job to identify in detail the job duties and skill requirements.
job analysis
a unique business organized by two or more other businesses to operate for a limited time and for a specific project. It is a type of partnership
joint venture
an organized group of employees who negotiate with employers about issues, such as wages and working conditions
labor union
the ability to motivate individuals and groups to accomplish important goals
leadership
money needed for the main resources of a business (such as land, buildings, and equipment) that will last for many years
long-term financing
A natural resource that is not replaced in a useful time frame.
nonrenewable resource
the value of next-best alternative that you were not able to choose
opportunity cost
a diagram that shows the structure of an organization, classifications f work and jobs, and the relationships among those classifications
organization chart
the environment in which people work, made up of the atmosphere, behaviors, beliefs, and relationships
organizational culture
organizingthe function of a manager that involves analyzing information, setting goals, and making decisions about what needs to be done
organizing
removing work from one company and sending it to another company that can complete it at a lower cost
outsourcing
a business owned and controlled by two or more people who have entered into a written agreement
partnership
a list of steps to be followed for performing a particular work activity; a description of the way work is to be done
procedures
individuals and organizations that determine products and services will be available for sale
producers
the production output in relation to a unit of input, such as a worker
productivity
any form of communication used to inform, persuade, or remind
promotion
a business owned and run by just one person
proprietorship
the peak of the business cycle, it is a period in which most people who want to work are working, business produce goods and services in record numbers, wages are good, and the rate of gross domestic product growth increases
prosperity
an organization that supplies a service or product vital to all people including companies that provide local service, water, and electricity
public utility
a government-set limit on the quantity of a product that may be imported or exported within a given period
quota
a tool that provides information about you to a potential employer
resume
the sales of durable and non durable goods bought by consumers
retail sales
direct payment of money to an employee for work completed
salary and wages
not having enough resources to satisfy every need
scarcity
a business that carries out activities that are consumed by its customers
service business
activities provided for the satisfaction of others that are consumed at the same time they are produced
services
the money needed to pay for the current operating activities of a business
short-term financing
an independent business with fewer than 500 employees
small business
the duty of a business to contribute to the well-being of community
social responsibility
the amount of money needed to open the business
start-up financing
ownership in a corporation
stock
the quantity of a good or service that businesses are willing and able to provide
supply
a natural, inborn aptitude to do certain things
talent
a tax that a government places on certain imported products
tariff
restrictions to free trade
trade barriers
what you make when you give something up to have something else
trade-off
a distinctive name, symbol, word picture, or combination of these that a company uses to identify products or services
trademark
an economy in which goods and services are produced the way they have always been produced. It is used in countries that are less developed and are not yet participating in the global economy.
traditional economy
the assignment of an employee to another job in the company with a similar level of responsibility
transfer
the portion of people in the labor force who are not working
unemployment rate
things that are important to you
values
things that add comfort and pleasure to your life
wants
the physical conditions and the psychological atmosphere in which employees work
work environment
all of the people 16 years or older who are employed or who are looking for a job
workforce
True or False? An entrepreneur who starts a new business is not considered to be a manager.
False
True or False? In a market economy, a marketplace is always a physical location where economic transactions take place.
False
True or False? Most available positions are advertised in the help-wanted section of newspapers.
False
Each of the following is a main section of a business plan except _____. a. Employee Responsibilities b. Customer Analysis c. Description of the Business d. Marketing Plan
a
Fire and police protection is the main responsibility of a. local government b. state government c. federal government d. all levels of government
a
Gross domestic product (GDP) is the dollar value of all _____. a. final goods and services produced in a country during one year b. final goods and services produced in, or imported to, a country during one year c. intermediate and final goods and services produced in a country during one year d. goods and services produced in a country during one year
a
True or False? Things that are required in order to live are wants.
False
True or False? A country may set a quota to protect one of its industries from too much foreign competition.
True
True or False? All investors in a general partnership have full liability for the debts of the business.
True
True or False? An organizational culture is made up of the atmosphere, behaviors, beliefs, and relationships in the workplace.
True
True or False? The lack of mobility can lead to locational unemployment.
True
True or False? Top-level managers spend most of their time planning and controlling activities.
True
the first step in the decision-making process involves a. defining the problem b. setting a goal c. identifying the choices d. evaluating alternatives
a
A country that wishes to enhance international trade activities would most likely use a. a tariff b. a common market c. an embargo d. a quota
b
A producer that mines coal is a(n) _____. a. wholesaler b. extractor c. manufacturer d. retailer
b
a financial situation that occurs when a government spends more than it takes in
budget deficit
a financial situation that occurs when a government spends less than it takes in
budget surplus
A _____ business should locate in an area with access to raw materials and transportation systems. a. service b. retail c. manufacturing d. wholesale
c
A _____ represents a unit of ownership in a corporation. a. certificate of deposit b. mortgage c. share of corporate stock d. corporate bond
c
A demand curve illustrates the relationship between quantity demanded of a product and _____. a. production costs b. quantity supplied c. price d. profit
c
A person whose work is more mental than physical and involves the handling and process of information is a a. blue-collar worker. b. human resources manager. c. white-collar worker. d. entrepreneur.
c
A retailer is an example of a(n) a. extractor b. producer c. intermediary d. service business
c
A(n) ________ is a short, specific written declaration of the reason a business exists and what it wants to achieve. a. statement of intent b. affirmation of purpose c. mission statement d. declaration of principle
c
An employee to whom a company makes a long-term commitment is considered to be a. full-time. b. part-time c. permanent d. temporary
c
An interviewer can ask a job applicant any of the following questions except _____. a. Are you a U.S. citizen? b. Do you have the physical ability to perform this job? c. Where were you born? d. Are you over age 18?
c
An organization that does business in several countries is known as a(n)_____ . a. parent company b. world trade organization c. multinational company d. imperialist company
c
Each of the following is one of the three economic questions that must be answered by all nations except_____. a. what goods and services will be produced? b. how will the goods and services be produced? c. who will receive the profits when goods and services are produced? d. what needs and wants will be satisfied with the goods and services produced?
c
Every business begins with a(n) a. customer. b. profit. c. idea. d. invention.
c
Gross domestic product (GDP) per capita is calculated by _____. a. multiplying GDP by the Consumer Price Index b. dividing GDP by the Consumer Price Index c. dividing GDP by the total population d. multiplying GDP by the total population
c
In emerging markets, consumer incomes an buying power are a. decreasing b. fluctuating c. increasing d. stable
c
In what type of business organization is each owner personally liable for all business debts, even if the debts were created by other owners? a. proprietorship b. corporation c. partnership d. S corporation
c
Members of the first level of management in a business are commonly called _____. a. work group leaders b. executives c. supervisors d. middle managers
c
On average, the percentage of employees' compensation spent on benefits is a. less than 5%. b. 10%-20%. c. 20%-40%. d. more than 50%.
c
Religion is an element of the __________ component of the international business environment. a. geographic b. economic c. cultural d. political
c
one who has no explicit or implicit contract for long-term employment
contingent worker
Antitrust laws are designed to a. reduce utility rates b. lower taxes c. create more jobs d. maintain competition
d
_____ financing is the money needed to pay for the current operating activities of a business. a. Owner b. Start-up c. Long-term d. Short-term
d
_____ is money provided by large investors to finance new products and new businesses that have a good chance to be very profitable. a. Working capital b. Marginal capital c. Leading capital d. Venture capital
d
________, one of the five functions of management, determines to what extent the business is accomplishing the goals it set out to reach in the planning stage. a. Judging b. Implementing c. Organizing d. Controlling
d
the phase of the business cycle in which demand begins to decrease, businesses lower production, unemployment begins to rise, and gross domestic product growth slows for two or more quarters of the calendar year
recession
the phase in the business cycle in which unemployment begins to decrease, demand for goods and services increases, and gross domestic product begins to rise again
recovery
a written agreement among all owners detailing the rules and procedures that guide ownership and operations
partnership agreement
the exclusive right of an inventor to make, sell, and use a product or process
patent
salaries and wages as well as investment income and government payments to individuals
personal income
the function of a manager that involves analyzing information, setting goals, and making decisions about what needs to be done
controlling
an economy that combines elements of the command and market economies
mixed economy
A manager should use tactical management when _____. a. working under tight time pressures b. employees are skilled and experienced c. employees are doing work they enjoy d. the manager wants to improve group relations
a
A nation's transportation, communication, and utility systems are part of its _____. a. infrastructure b. human resources c. cultural resources d. natural resources
a
True or False? Supply is the quantity of a good or service that a consumer is willing and able to buy at a particular price.
False
True or False? Technology has allowed people to work fewer hours.
False
True or False? The basic economic problem is that consumers have too many products and services to choose from.
False
True or False? There has never been a true depression in the United States.
False
True or False? There is little evidence that developing a business plan has any impact on whether a new business fails or succeeds.
False
True or False? When demand for a nation's products and currency increase, the value of the nation's currency usually remains constant or rises.
False
True or False? When leaving a job, you should give your current employer at least a one-day notice.
False
True or False? When preparing your résumé, you should exaggerate your qualifications to improve your chances of winning the job.
False
True or False? Without personal savings, businesses could not carry out capital projects.
False
True or False? You should be prepared to accept a job offer as soon as it is made.
False
A(n) _____ employee is one to whom a company makes a long-term commitment. a. permanent b. full-time c. hourly d. salaried
a
True or False? When there are many competitors in a market, individual businesses are not able to easily raise their prices.
True
True or False? Without foreign trade, many things you buy would cost more or not be available at all.
True
True or False? You do not have to be a manager to be a leader.
True
True or False? You will likely pay more for a product or service from a small company than from a large one.
True
True or False? an entrepreneur is an economic resource
True
True or False? both individuals and organizations can be producers
True
A U.S. manufacturer of computer chips wants to produce some of its chips in Japan. The U.S. company wants to do this with as little financial investment and risk as possible. It also does not want to be actively involved with the Japanese company. Which expansion method should the U.S. company use? a. licensing b. franchising c. international partnership d. joint venture
a
A _____ must name a board of directors that will make the major policy and financial decisions for the business. a. corporation b. limited liability company c. limited liability partnership d. proprietorship
a
A(n) __________ is an event that allows a person to contact several prospective employers in a short time. a. career fair b. informational interview c. network d. career resource center
a
A(n) __________ tax is a common source of revenue for state and local governments. a. sales b. import c. gift d. unemployment
a
All of the following are service-providing industries except _____. a. construction b. insurance c. transportation d. health care
a
All people above 16 who are actively working or seeking work make up the _____. a. labor force b. unemployment rate c. labor organization d. creditor pool
a
An international organization that settles trade disagreements and enforces free-trade agreements is the a. WTO b. United Nations c. IMF d. World Bank
a
the movement of the economy from one condition to another and back again. The four phases are prosperity, recession, depression, and recovery
business cycle
Money needed for the important resources of a business (such as land, buildings, and equipment) that will last for many years is called a. start-up financing. b. short-term financing. c. long-term financing. d. credit.
c
Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable is known as a. a loan. b. credit. c. venture capital. d. start-up funding.
c
When you purchase a corporate bond, you become one of the corporation's _____. a. borrowers b. equity holders c. creditors d. owners
c
Which of the following actions by a manager emphasizes to employees that ethical behavior is a priority? a. The manager observes an employee intentionally misleading a customer, but chooses to let it go this time. b. The manager ignores an employee's use of an illegal drug because it occurred outside the office building. c. The manager confronts an employee about writing personal emails on company time. d. The manager allows some defective products to go out to customers because customers will not notice the defects.
c
the value of a currency in one country compared with the value in another
exchange rate
an interview in which your employer asks questions about your work upon your leaving the company
exit interview
goods and services sold to other countries
exports
things you can see and touch; they are products you can purchase to meet your wants and needs
goods
the total value of all final goods and services produced in a country during one year
gross domestic product (GDP)
John has two hours before having to go to his part-time job. He is deciding between studying for a math exam and taking a nap. If John chooses to take a nap, the opportunity cost of his decision is a. the rest he is getting b. the score he will earn on his math exam c. the wages from his part-time job d. all of the above
b
Members of the _____ are retired businesspeople who volunteer their services to help new business owners. a. National Federation of Independent Business b. Service Corps of Retired Executives c. Small Business Administration d. Chamber of Commerce
b
When a country's imports exceed its exports, there is a trade a. surplus b. deficit c. exchange d. balance
b
State and federal laws require most businesses to offer and pay the cost of all of the following benefits except _____. a. social security b. compensation for overtime hours worked c. health insurance d. contributions to funds for unemployed workers
c
The U.S. workforce is made up of nearly __________ people. a. 80 million b. 110 million c. 160 million d. 260 million
c
The United States government forbids U.S. companies to sell weapons to certain countries. This restriction is an example of a(an) _____. a. tariff b. informal trade barrier c. embargo d. quota
c
The first step of the career planning process is to a. prepare a resume and cover letter. b. interview for a job. c. determine your interests and abilities. d. obtain career training.
c
The primary reason why businesses invest resources and take risks is to _____. a. produce goods and services b. provide jobs c. earn a profit d. improve their products
c
The purpose of a cover letter is to obtain _____. a. an application form b. information about the job c. an interview d. a job offer
c
Valid, enforceable contracts must contain all of the following except _____. a. legality b. competent parties c. guarantees d. agreement
c
What is the most common type of small business, making up about 14.5 percent of all small businesses? a. manufacturing b. educational services c. retail trade d. construction
c
the quantity of a good or service that consumers are willing and able to buy
demand
the phase of the business cycle that is marked by a prolonged period of high unemployment, weak consumer sales, and business failures
depression
the comprehensive inclusion of people with differences in personal characteristics and attributes
diversity
True or False? Research has proven that effective leaders are born and not made.
False
True or False? Volunteering experience can result in obtaining career skills.
True
A good way to decide whether a business's action is ethical is to ask yourself whether it will _____. a. increase the firm's sales b. embarrass the firm if the action becomes public knowledge c. increase the firm's profits d. improve the firm's competitive position in the market
b
A(n) _____ interview occurs when you are leaving a job. a. networking b. exit c. informational d. employment
b
Unity of command means there is _____. a. an overall plan that tells each employee what to do b. a clear reporting relationship for all staff of a business c. a way for ideas to flow from employees to managers d. a single person in charge of a business
b
rules about how businesses and their employees ought to behave
business ethics
Local governments use most of the revenue from _____ to pay for schools and local services such as police protection and community parks. a. sales taxes b. individual income taxes c. corporate income taxes d. property taxes
d
practices that ensure the appropriate standards of conduct are observed in a company's relationships with everyone who is a part of the business or affected by the business' activities
ethical business practices
things available to be used to produce goods and services
economic resources
the method a country uses to answer the three economic questions
economic system
True or False? Socially responsible actions by a business benefit society but not the business.
False
True or False? Sophisticated computer and communications systems have increased the need for office employees such as bookkeepers and clerks.
False
True or False? A functional organizational structure is a diagram that shows the structure of an organization, classifications of work and jobs, and the relationships among those classifications.
False
True or False? A monopoly is never a benefit to consumers.
False
True or False? A straight salary pays a specific amount of money for each hour of work.
False
True or False? According to the Small Business Administration (SBA), a small business is one with 100 or fewer workers.
False
True or False? An economy that is largely involved in agriculture is highly developed.
False
True or False? An informal trade barrier is created by government actions.
False
True or False? Business owners who are looking for investors to finance a new company must prepare a business plan, but a business plan is not necessary if the owners do not need outside help.
False
True or False? Clauses in labor contracts that pertain to the health and safety of employees while they are on the job are called fringe benefits.
False
True or False? Companies should interview all prospective employees who apply for a job.
False
True or False? Consumers are individuals and organizations that determine what products and services will be available for sale.
False
True or False? Debt is harmful to a company.
False
True or False? Deflation results in lower buying power of money.
False
True or False? Effective managers recognize workers who have informal influence over others and remove them from their jobs.
False
True or False? Effective managers should use strategic management rather than tactical management.
False
True or False? Employers are allowed to exclude women applicants from jobs that are physically demanding.
False
True or False? Everyone who owns or manages a business is an entrepreneur.
False
True or False? If you plan to post your résumé online, you should take advantage of the many electronic formats that are available to you, such as bold, italics, and special fonts.
False
True or False? Intellectual property may either be tangible or intangible depending on how it is marketed.
False
True or False? International trade with other countries is the responsibility of state and local governments.
False
True or False? Management is the process of requiring all workers to follow instructions and business policies.
False
True or False? Most small business owners enjoy being part of a team.
False
True or False? Most young entrepreneurs are female.
False
True or False? One important advantage of forming a partnership is that this form of business organization gives each owner sole control over the business.
False
True or False? Performance management is the evaluation of a worker's ability to get along with other employees.
False
True or False? Policies are descriptions of the way work is to be done.
False
True or False Deflation has occurred in the United States.
True
True or False? A balance-of-payments calculation includes other forms of exchange among nations in addition to trade.
True
True or False? A bond represents a debt for an organization.
True
True or False? An employment interview is a two-way conversation in which the interviewer learns about you and you learn about the job and the company.
True
True or False? Approximately half of all small businesses are home-based businesses.
True
True or False? Before a business owner completes the business plan, he or she should ask business experts to review the plan.
True
True or False? Managers are expected to find ways to meet employee needs as well as business needs.
True
True or False? Managers are responsible for the ethical actions of a business.
True
True or False? Most U.S. businesses have no employees other than the owner.
True
True or False? One goal of the World Trade Organization (WTO) is to encourage lower tariffs.
True
True or False? Policies and procedures help provide direction for a business.
True
True or False? Service businesses are the fastest growing part of the U.S. economy.
True
True or False? The U.S. economy has moved from an emphasis on goods-providing businesses to service-providing businesses.
True
True or False? The United States is the largest producer of goods and services in the world.
True
True or False? The basic economic problem results from scarcity.
True
True or False? There are greater numbers of both younger and older employees in the workforce today than there were in the past.
True
Before you fill out a job application form, you need to prepare a _____ to ensure that you have all the necessary information to fill out the form. a. personal data sheet b. cover letter c. career portfolio d. résumé
a
Consumer debt includes each of the following except _____. a. unspent consumer income b. auto loans c. home mortgages d. unpaid credit card balances
a
Groups of people form consumer cooperatives to _____. a. purchase goods and services more cheaply than they could as individuals b. generate a profit for each member of the group c. reduce the amount of property taxes that each member must pay d. increase their political power in their community
a
If you want to save money at a savings institution, you would be most interested in the _____. a. certificate of deposit rate b. T-bill rate c. prime rate d. discount rate
a
In a recent year, the United States exported $26.5 billion in goods to France. It imported $34.0 billion in goods from France. In that year, the U.S. had a _____ with France. a. $7.5 billion trade deficit b. $60.5 billion trade surplus c. $60.5 billion trade deficit d. $7.5 billion trade surplus
a
Roughly what percentage of new jobs are created by businesses with fewer than 500 employees? a. 80 percent b. 20 percent c. 60 percent d. 40 percent
a
Some job applicants send potential employers a targeted application letter _____. a. instead of a résumé and cover letter b. along with a résumé c. in addition to a résumé and cover letter d. along with a cover letter
a
The Bureau of Labor Statistics publication that provides detailed and up-to-date information about the U.S. workforce is the a. Occupational Outlook Handbook b. IRA Publication 15 c. Congressional Report d. Businesse Report
a
The Consumer Price Index (CPI) is a measure of _____. a. inflation b. consumer debt c. interest rates d. retail sales
a
The easiest form of business to start and end is a _____. a. proprietorship b. S corporation c. limited liability partnership d. franchise
a
The first step in the decision-making process is to_____. a. define the problem b. review your decision c. evaluate advantages and disadvantages of each choice d. identify the choices
a
The form of ownership that gives one person sole control over all business decisions is the a. proprietorship. b. partnership. c. corporation. d. franchise.
a
The job of a _____ worker involves a great deal of physical work, including the operation of machinery and equipment or other production activities. a. blue-collar b. union c. service d. white-collar
a
The obligation to complete specific work is a. responsibility b. authority c. accountability d. recognition
a
The primary reason business owners make investments and take risks in a private enterprise system is to a. make a profit b. satisfy customer needs c. develop new products d. meet government requirements
a
The purpose of an informational interview is to a. obtain information about a career area. b. apply for a job with a nonprofit organization. c. research salaries for starting employees. d. gain career training experience.
a
The two parts of worker's compensation are _____. a. benefits and salary or wages b. benefits and reimbursements c. base pay and commissions d. working conditions and salary or wages
a
The value of a country's currency is likely to decline as a result of a. higher inflation b. lower interest rates c. a trade surplus d. a favorable balance of payments
a
The way people get along with each other is known as a. human relations. b. influence. c. managemen style. d. communications.
a
True or False? Entrepreneurship is the process of starting, organizing, managing, and assuming the responsibility for a business.
a
When many more people wish to purchase a product, its price will tend to _____. a. increase b. decline only to rise again c. fall d. stay the same
a
Which incentive system pays an employee a percentage of sales for which he or she is responsible? a. commission b. base plus incentive c. profit sharing d. piece rate
a
Which level of management spends most of its time completing planning and conrolling activities? a. top management b. middle management c. supervisors d. team management
a
Which of the following is not a characteristic of enterpreneurship in the Unite States? a. About 3 percent of people aged 18-64 are involved in enterpreneurship activity. b. About 500,000 new businesses are created each year. c. About 27 percent of job growth coes from businesses with less than 20 employees. d. One in every ten Americans has invested in a business of someone who they know well.
a
Which of the following is not a major goal of human resources managers? a. supervise the work of newly hired employees b. develop plans to compensate personnel for their work c. protect the health and well-being of employees d. maintain an adequate supply of people to fill the needs of the company
a
Which of the following is not one of the common activities of all businesses? a. producing goods and services b. employing and training personnel c. marketing goods and services d. maintaining business records
a
Which of the following is not one of the six basic activities that all businesses perform? a. conserving resources b. generating ideas c. raising capital d. buying goods and services
a
Which of the following would an economicist most likely classify as a need? a. gasoline for a florist's truck b. battery-powered automobile c. a flat-screen television d. part-time job to earn extra money
a
Which organization maintains an orderly system of world trade and exchange rates? a. International Monetary Fund (IMF) b. International Finance Corporation (IFC) c. World Bank d. World Trade Organization (WTO)
a
XYZ Company produces and sells five products. People who specialize in production and marketing are assigned to each product. XYZ Company has a _____ organization structure. a. matrix b. functional c. corporate d. unity of command
a
________ are precise statements of results a business expects to achieve. a. Goals b. Policies c. Articles of incorporation d. Strategies
a
an example of a natural resource is a. sunlight b. a computer programmer c. a fishing net d. money
a
An example of a nonrenewable resource would be a. solar energy b. gold c. agricultural products d. a library book
b
Economic decision making is the process of choosing _____. a. how to spend your time. b. which needs and wants will be satisfied. c. whether to buy products now or later. d. how to use your income.
b
Equity refers to a. reduced spending by government b. ownership in a company c. borrowing to finance a capital project d. increased government taxes
b
Ethical behavior is made up of two parts: the actions of individuals and groups and ________. a. laws that govern those actions b. the results of those actions c. the financial cost of their behavior d. community values
b
Federal, state, and local government purchases about _____ percent of all the goods and services sold in the United States. a. 21 b. 32 c. 47 d. 8
b
In a __________ the resources are owned and controlled by the government a. market economy b. command economy c. traditional economy d. mixed economy
b
Most nations of the world can be classified as having a _____. a. market economy b. mixed economy c. traditional economy d. command economy
b
Over the past 50 years, the proportion of women who work outside the home has _____. a. stayed almost the same b. grown significantly c. grown very slowly d. declined slightly
b
Physicians, web designers, and furniture movers are _____ . a. nonprofit corporations b. service businesses c. manufacturers d. intermediaries
b
Productivity would likely increase as a result of a. higher taxes b. expanded production technology c. decreased training programs d. lower interest rates
b
Self-understanding, communication, and team building are important _____ skills of managers. a. ethical modeling b. human relations c. staffing d. tactical management
b
Some employees can complete part or all of their work away from the business site under a. flextime. b. flexplace. c. job sharing. d. personal time.
b
The Americans with Disabilities Act (ADA) requires that a company a. provide training to people with disabilities b. find ways to help workers who are physically challenged c. hire a certain number of people with special needs d. adapt products manufactured for special-needs customers
b
The five functions of managers include each of the following except _____. a. planning b. cooperating c. staffing d. organizing
b
The item least likely to be included on a resume is a. a school award. b. your references. c. schools attended. d. your work experience.
b
The people who make the major policy and financial decisions in a corporation are the a. investors. b. board of directors. c. managers. d. owners.
b
What is your first task in career planning? a. preparing for an interview b. assessing your interests, values, talents, and abilities c. writing your résumé d. analyzing the job market in your area
b
Which company policy allows workers to do some of their job from home? a. job sharing b. flexplace c. personal time d. flextime
b
Which of the following addresses the economic question of how to produce? a. growing corn instead of potatoes b. requiring individuals to complete specific types of work c. producing more capital goods and fewer consumer products d. selling natural resources to other countries
b
Which of the following is not a principle upon which the U.S. economic system is based? a. freedom of choice b. government regulation c. competition d. private property
b
Which of the following sources of career information allows you to watch someone actually doing the job that interests you? a. career fair b. job shadowing c. networking d. informational interview
b
Which of the following would be an example of international business? a. A farmer in Iowa using equipment made in Indiana b. A sales staff in South Carolina representing a foreign producer c. A resturant in Chicago offering Asian menu items d. A retail store in Oregon selling craft items from local artists
b
Which of the following would most likely cause a budget surplus for government? a. higher spending b. lower spending c. higher borrowing d. lower taxes
b
_____ are made up of the products or raw materials a business has on hand. a. Assets b. Inventories c. Stocks d. Reserves
b
_____ include tools and equipment used to produce goods and services. a. natural resources b. capital resources c. human resources d. consumer resources
b
_____ is the making, buying, and selling of goods and services within a country. a. International business b. Domestic business c. Foreign trade d. Multinational trade
b
________ values are the important principles that will guide decisions and actions in the company. a. Family b. Core c. Community d. Strategic
b
Which of the following information should not be included in a résumé? a. education, training, and related job experience b. name, address, phone number and e-mail address c. marital or family information d. career objective
c
Which of the following is an example of a service? a. The shingles that are used to put a new roof on your home. b. The increased value of your home after a new roof is installed. c. The effort of the worker you hire to put a new roof on your home. d. The hammer that is used to install the new shingles on your home.
c
Which of the following is not a common reason for the failure of small businesses? a. failure to manage credit offered to customers b. lack of sufficient start-up money c. shortage of skilled workers d. lack of management experience
c
Which of the following is not a stanard of ethical behavior? a. It should be lawful. b. It should not harm some to others benefit. c. It should not give the company a competitive advantage. d. It should not result in embarrassement for the company.
c
Which of the following is not one of the five fuctions of management? a. planning b. implementing c. producing d. conrolling
c
Which of the following is not shown on an organizational chart? a. the structure of the organization b. work relationships c. job descriptions d. classification of jobs
c
________ workers helps managers understand employees and demonstrates that managers respect their ideas. a. Directing b. Assessing c. Listening to d. Evaluating
c
as competition increases, prices a. usually increase as well b. are not affected c. usually decrease d. there is no way to predict what will happen to prices due to competition
c
tangible evidence of your ability and skills
career portfolio
a set of rules for guiding the action of employees or members of an organization
code of ethics
an economy in which resources are owned and controlled by the government
command economy
the amount of money paid to an employee for work performed, including salary and wages
compensation
a person who buys and uses goods and services
consumer
an agreement to exchange goods or services for something of value, usually money
contract
A company is planning to sell the rights to its brand name for use in other countries. This is an example of a a. joint venture b. trade agreement c. franchise d. licensing agreement
d
A competitive advantage that small businesses have over larger businesses is a. lower costs. b. more consumer research. c. lower prices. d. attention to unique customer needs.
d
A corporation that uses a global strategy _____. a. uses the same product and marketing strategy worldwide b. intends to gain political power in other countries c. has a parent company and divisions or separate companies in the host country d. adapts its products and marketing strategies to each country's customs, tastes, and buying habits
d
A desire to assist others in your job is an example of your a. talents. b. interests. c. abilities. d. values.
d
A manager is better able to influence workers when he or she _____. a. has an impressive job title b. earns a large salary c. is an older person d. is recognized as an expert
d
A person who is not a manager but is still able to get a group focused and organized is using a. tactical management. b. strategic management. c. formal influene. d. informal influence.
d
A special form of business organization that combines advantages of a corporation and a partnership is a a. franchise. b. nonprofit corporation. c. cooperative. d. limited liability company.
d
All of the following can increase productivity except _____. a. better training for workers b. increased wages for workers c. improved management techniques d. improved technology
d
Country X can produce corn and sugar at a lower cost than other countries. However, the world market for corn is stronger than for sugar. Therefore, Country X chooses to specialize in producing corn and to buy sugar from other countries. This example illustrates the concept of _____ . a. balance of payments b. balance of trade c. absolute advantage d. comparative advantage
d
Each of the following is a characteristic of effective leaders except _____. a. initiative b. dependability c. intelligence d. vanity
d
Each of the following is a common role of the U.S. government in the economy except _____. a. protecting citizens, consumers, businesses, and workers b. providing information and support to businesses c. regulating utilities and promoting competition d. establishing fringe benefits employers must provide to workers
d
If the United States set a 12 percent tariff on imported automobiles, a car imported from Japan that costs the equivalent of $26,000 in Japan would be priced at _____ in the United States. (Disregard shipping costs.) a. $31,200 b. $26,120 c. $22,880 d. $29,120
d
If the inflation rate was 3 percent in one year, a product that cost $500 at the beginning of the year would cost approximately _____ at the beginning of the next year. a. $503 b. $510 c. $560 d. $515
d
Important principles that guide decision and actions in a company are known as a. a mission statement. b. a business plan. c. ethical behavior. d. core values.
d
In which of the following economic systems is the government's role greatest? a. mixed b. traditional c. market d. command
d
Many small businesses have an advantage over larger businesses because they are better able to _____. a. mass produce products b. raise large amounts of financial capital c. market their products d. provide unique services to customers
d
Retail sales include a. taxes collected b. companies buying new equipment c. borrowing by business d. school supplies bought by students
d
Spending time with a worker on the job to learn about a career is called a. networking. b. personal assessment. c. career training. d. job shadowing.
d
The Constitution gives the federal government the power to regulate _____. a. intrastate and foreign commerce b. interstate and intrastate commerce c. interstate, intrastate, and foreign commerce d. foreign and interstate commerce
d
The Small Business Administration considers a business small if it employs fewer than _____ employees. a. 5 b. 20 c. 100 d. 500
d
The _____ is the interest rate that banks make available to their best business customers. a. mortgage rate b. corporate bond rate c. discount rate d. prime rate
d
The _____ monitors and enforces standards for water and air quality. a. Bureau of Labor Statistics (BLS) b. Department of Commerce (DOC) c. Occupational Safety and Health Administration (OSHA) d. Environmental Protection Agency (EPA)
d
The ability to motivate individuals and groups to accomplish important goals is a. influence. b. power. c. management. d. leadership.
d
The comprehensive inclusion of people with differences in personal characteristics and attributes is called ___. a. incentive systems b. outsourcing c. job sharing d. diversity
d
The largest number of U.S. businesses employ a. more than 100 people. b. between 50 and 100 people. c. between 10 and 20 people. d. no employees other than the owner.
d
The phase of the business cycle in which unemployment is highest is a. recession b. recovery c. prosperity d. depression
d
The recurring ups and downs of gross domestic product (GDP) in an economy is called the _____. a. bond market b. stock market c. money cycle d. business cycle
d
The term most closely related to diversity is a. affirmative action. b. discrimation. c. minority. d. inclusion
d
The workforce includes all of the following people, 16 years and older, except _____. a. people who are looking for a job b. temporary workers c. part-time workers d. people serving in the active military
d
Which of the following actions demonstrates a conflict of interest? a. A business manager raises the price of products his store sells to try to earn more profit. b. A business owner lowers the quality of the products he sells to try to earn more profit. c. An employee makes personal phone calls on company time. d. A business owner serves in the government agency that regulates the business she owns.
d
Which of the following is an example of a nonrenewable resource? a. hydroelectric power b. fish in the ocean c. lumber d. crude oil
d
Which of the following is not a fundamental principle that guides the effective organization of work? a. accountability b. responsibility c. authority d. moderation
d
Which of the following is not one of the reasons small businesses fail? a. poor customer credit practices b. the owner does not have the adequate experience c. a poor business location d. not enough employees to do the work
d
Which of the following situations in Russia would likely cause the value of the Russian ruble to rise? a. an unstable government b. a new law restricting foreign businesses c. high inflation d. low interest rates
d
Which of the following would not be a part of a company's human resources? a. managers b. full-time employees c. temporary employees d. All would be included as human resources.
d
Which of the following would not be included in GDP? a. exports to other countries b. purchase of computers by government c. automobiles purchased d. dinner preparation for your family
d
a planned reduction in the number of employees needed in a firm in order to reduce costs and make the business more efficient
downsizing
the process of choosing which needs and wants will be satisfied
economic decision making
the willingness and ability of a person to move to where jobs are located
mobility
the end of an employment relationship between a company and an employee
termination
money provided by large investors to finance new products and new businesses that have a good chance to be very profitable
venture capital